Gravita India has delivered a robust financial performance in the third quarter, showcasing strong profitability growth and improved operational efficiency. The company's consolidated results demonstrate significant year-on-year improvements across key financial metrics, particularly in profit margins and earnings quality.

Financial Performance Overview

The company's Q3 financial results reflect a well-balanced growth trajectory with notable improvements in profitability metrics:

Revenue and Profitability Analysis

Gravita India's revenue performance in Q3 showed steady growth, rising to ₹1,017.00 crores from ₹996.00 crores in the corresponding quarter of the previous year. While the revenue growth was modest at 2.11%, the company demonstrated exceptional operational leverage through significant improvements in profitability metrics.

The most impressive aspect of the quarterly performance was the substantial jump in net profit, which increased by 25.42% year-on-year to reach ₹97.70 crores. This strong profit growth on relatively modest revenue increase indicates improved cost management and operational efficiency.

Operational Efficiency Improvements

The company's EBITDA performance stood out as a key highlight of the quarter. EBITDA surged by 47.97% to ₹120.00 crores compared to ₹81.10 crores in the same quarter last year. This substantial increase in earnings before interest, taxes, depreciation, and amortization reflects the company's enhanced operational capabilities.

The EBITDA margin expansion was particularly noteworthy, improving significantly to 11.80% from 8.14% year-on-year. This 366 basis points improvement in margin demonstrates the company's ability to optimize its cost structure and improve operational efficiency while maintaining revenue growth.

Key Performance Highlights

The Q3 results showcase several positive developments for Gravita India:

• Strong profit growth: Net profit increased by over 25% despite modest revenue growth
• Margin expansion: EBITDA margin improved by more than 3.5 percentage points
• Operational leverage: Significant improvement in earnings quality and cost management
• Consistent performance: Maintained revenue growth while enhancing profitability

These results indicate that Gravita India has successfully focused on improving its operational efficiency and cost management capabilities, leading to enhanced profitability and stronger financial performance in the third quarter.

Gravita India has received a clean monitoring report from ICRA Limited for its Qualified Institutional Placement (QIP) proceeds utilization during the quarter ended December 31, 2025. The monitoring agency confirmed no deviations from the disclosed objects of the issue, indicating compliant fund deployment by the lead recycling company.

QIP Issue Overview

The company successfully raised ₹1000.00 crores through its QIP issue conducted between December 16-19, 2024. The issue comprised 47,70,537 equity shares priced at ₹2096.20 each, including a premium of ₹2094.20 per share. After accounting for issue-related expenses, the net proceeds available for utilization stood at ₹981.42 crores.

Fund Utilization Progress

As of December 31, 2025, Gravita India has utilized ₹909.47 crores of the total ₹1000.00 crores raised, representing approximately 91% deployment of the proceeds. The utilization pattern demonstrates focused execution across the three stated objectives of the QIP.

The company has fully utilized funds allocated for working capital requirements and general corporate purposes. The remaining unutilized amount of ₹90.53 crores pertains entirely to the debt repayment objective, which is scheduled for completion during FY2026.

General Corporate Purpose Deployment

The monitoring report provides detailed breakdown of the ₹201.42 crores utilized under general corporate purposes during Q3 and Q4 FY25:

• TREDS Payments: ₹104.29 crores (₹13.82 crores in Q3 FY25 and ₹90.47 crores in Q4 FY25)
• Statutory Dues: ₹57.40 crores in Q4 FY25
• Domestic Vendors & Salary Payments: ₹39.73 crores in Q4 FY25

Unutilized Proceeds Investment

The company has prudently invested the unutilized ₹90.53 crores across various financial instruments to optimize returns while maintaining liquidity. The investments have generated earnings of ₹4.11 crores, bringing the total value to ₹94.64 crores as of quarter-end.

Regulatory Compliance and Timeline

ICRA Limited's monitoring report confirms that all fund utilization aligns with SEBI regulations and the original offer document disclosures. The company has maintained the proposed timeline for fund deployment, with working capital and general corporate purpose objectives completed as scheduled. The debt repayment component remains on track for completion within FY2026 as originally planned.

The monitoring agency found no unfavorable events affecting the viability of the stated objectives and confirmed that all statutory approvals related to the fund utilization have been appropriately obtained. This positive assessment reinforces the company's disciplined approach to capital deployment and regulatory compliance.